Local payment processor Paymongo has raised $31 million through a Series B funding round. This has brought the total investment in the three-year-old startup to nearly $46 million.
New investors JAM Fund, ICCP SBI Venture Partners, and Kaya Founders joined existing investors Global Founders Capital and SOMA Capital in the round.
Investors in the Series B funding round include Tinder cofounder Justin Mateen’s JAM Fund as well as Philippine venture capital firms ICCP SBI Venture Partners and Kaya Founders. The latter is led by Lisa Gokongwei, a member of the family that controls the JG Summit conglomerate. Existing investors Global Founders Capital and SOMA Capital also participated in the round.
“This investment is a testament to our growth and the continued growth of our merchants,” said PayMongo cofounder and CEO Francis Plaza in a statement. “With this Series B, we will invest further in our merchants’ successes by giving them more means to move money seamlessly online.”
Prior to PayMongo’s Series B funding round, the company raised $12 million in a Series A financing round in 2020 and $2.7 million in a seed funding round in 2019.
“As one of PayMongo’s first investors, I’ve seen their path from simplifying payments for a handful of businesses to now being a company that thousands of merchants depend on for their day-to-day operations,” JAM’s Mateen said in the statement. “I’m excited by their progress and thrilled to support the team once again as they generate greater economic opportunities through the digital economy.”
Since PayMongo’s Series A funding round in 2020, the startup has tripled growth in merchant base and quadrupled growth in monthly transaction volumes. Now, it’s looking to target small- and medium-sized enterprises. Alongside micro-enterprises, these comprise around 99 percent of businesses in the Philippines. Despite this, they’ve remained underserved by traditional payment providers. (Read: PayMongo launches accelerator program for small businesses in the Philippines)
In addition, the company is looking to expand beyond the Philippines onto other markets in the Southeast Asian region.
“While payment acceptance is crucial, it is just one of the many services that entrepreneurs need to build a successful online business,” said Plaza. “Our goal is to create a one-stop-shop for all these financial needs in the broader Southeast Asian region, starting with the Philippines.”
With this goal in mind, the company has already made several steps, including partnering with Singapore-based security company Vesta to bolster its services. PayMongo’s recent Series B funding round should only help the company work towards this goal.
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